Thursday, June 1, 2017

Pacific NorthWest LNG project one of a number of energy projects awaiting a government

The fate of the PNW LNG projectmay become part of the politicalfallout playing out in Victoria inthe post election period

As British Columbia's political destiny plays out, the fate of a number of high profile energy projects will quickly move to the front of the line, particularly if as seems likely that the province has an NDP government assisted by the Green Party sitting in the Legislature by the end of June.

Any NDP/Green takeover of power will apparently have to wait until Premier Christy Clark calls the Legislature back into session, a period of procedure that even she seems to admit will sooner rather than later mean a non-confidence vote and the shift of power to the forces across the aisle.

Whilemuch of the discussion on energy so far has involved the Kinder Morgan Pipeline project and the work taking place on the Site C hydro electric project, one Northwest issue not to be left out off the list set for a look over will be that of the Pacific NorthWest LNG project set for Lelu Island.

The PNW LNG project was one which was targeted by NDP leader John Horgan as a proposal placed in the wrong location, with Mr. Horgan frequently outlining his preference for the LNG terminal to be shifted over to Ridley Island.

In recent months, the Malaysian energy giant Petronas has been working on a plan that could see the LNG loading facility relocated to a dock off of Ridley, away from the eel grass beds of Lelu Island, while the production terminal itself would remain in the initial site that was approved.

Whether either concept would satisfy a John Horgan government remains to be seen, as many of his previous thoughts on a relocation for the site came before he had the need of some Green votes to secure his ambition of forming a minority government.

How they approach Energy issues appears to be one of the major themes that the NDP and Greens will still have to work out when it comes to a common platform.

Already the battle lines are forming outside of the province as both the Federal and Alberta governments express their concerns over gaining access to British Columbia tidewater to ship resources to markets overseas.

With all of that bluster still roiling up, it will be fascinating to see how the two partners that are looking to grab the reins of power will address the entire concept of a BC LNG industry while trying to reconcile their climate action strategy.

The Globe and Mail's Brent Jang who has spent quite a bit of time travelling the North Coast reviewing the early stages of the LNG proposals for the region has offered up an outline of the potential for a looming battle between the Trudeau government and the guardians of what will be the new reality in BC politics.

As part of his overview of the potential showdown between the Feds and the NDP/Green group, Mr. Jang recounts some of the past observations by Mr. Horgan on the PNW proposal, as well as Mr. Weaver's criticism when it came to the approval by the Federal Government for the Pacific NorthWest LNG project.

Petronas is still in the process of reviewing its Final Investment Plans for the proposed development, with a new political landscape in the offing for the province, that review may now feature some new elements to add to the mix as the Malaysian energy company weighs its options and financial commitment.